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Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information
Note 12 — Segment Information

The Company manages and evaluates its operations in two reportable segments: Housekeeping (housekeeping, laundry, linen and other services) and Dietary (dietary department services). Although both segments serve a similar customer base and share many operational similarities, they are managed separately due to distinct differences in the type of services provided, as well as the specialized expertise required of the professional management personnel responsible for delivering each segment’s services. Such services are rendered pursuant to discrete contracts, specific to each reportable segment.

In 2024, the Company adopted ASU 2023-07. ASU 2023-07 created certain additional disclosure requirements, including, among other requirements, a disclosure of the Company’s Significant Segment Expenses (“SSEs”) regularly provided to the Company’s Chief Operating Decision Maker (“CODM”) included within each reported measure of segment profit or loss, a required disclosure for other segment items and a narrative description of such items, a disclosure of the title and the position of the CODM and a narrative disclosure describing how the CODM uses the reported segment profit or loss measures to assess segment performance and allocate resources.

The CODM for both segments for each of the years ended December 31, 2024, 2023, and 2022 was Theodore Wahl, the Company’s President and Chief Executive Officer. As part of the adoption of ASU 2023-07, management reviewed the information provided to the CODM and updated the presentation of such information, including SSEs, to better align with the requirements of ASU 2023-07. Certain prior period segment information has been recast in order to conform with current-period presentation requirements, including the allocation methodology of bad debt expense, labor and labor-related costs and certain other segment items to segments. Additionally, the Company’s CODM does not review assets by segment to assess segment performance or allocate resources, nor is such information provided to the CODM. Accordingly, the Company does not present assets by segment.

The Company’s SSEs for each segment include direct labor costs and segment-based management expenses (collectively, “labor and labor-related”), food, chemicals and supplies, bad debt expense, and depreciation & amortization, as these are specific costs regularly provided to the CODM and used to evaluate segment performance. Other segment items include expenses recorded within costs of services provided which are not regularly provided to the CODM. The CODM evaluates segment profit each period against historical results, factoring in macroeconomic factors such as the cost of labor and supplies, to assess segment performance.

The Company’s accounting policies for the segments are generally the same as described in the Company’s significant accounting policies. The Company does not allocate Corporate expenses, gains (losses) on deferred compensation plan investments, other (income) expense, net, interest expense and income tax provision to segments; such amounts are added to combined segment profit and reconciled to the Company’s consolidated income before income taxes. All revenues and net income are earned in the United States.
The following tables provide profit information disaggregated by the Company’s reportable segments for each of the years ended December 31, 2024, 2023, and 2022:

Year Ended December 31, 2024
HousekeepingDietaryTotal
(in thousands, except for percentages)
Revenues$765,368 $950,314 $1,715,682 
Significant Segment Expenses
Labor and labor-related1
600,198 537,446 1,137,644 
Food, chemicals and supplies56,504 308,859 365,363 
Bad debt expense14,101 32,659 46,760 
Depreciation and amortization expense3,701 2,856 6,557 
Other segment items2
15,454 22,473 37,927 
Segment profit$75,410 $46,021 $121,431 
Segment margin9.9 %4.8 %
Unallocated expenses (income)
Corporate expenses3
$68,160 
Gain on deferred compensation plan investments8,241 
Other (income), net(14,349)
Interest expense6,438 
Income before income taxes$52,941 
1.Includes direct labor costs, field management costs (including certain costs included in selling, general and administrative expense), employer taxes, workers' compensation and general liability insurance.
2.Includes expenses for technology, employment advertising, travel & entertainment, professional services and various other less significant expense items.
3.Represents selling, general and administrative expense less the amounts allocated to segments for labor and benefits.
Year Ended December 31, 2023
HousekeepingDietaryTotal
(in thousands, except for percentages)
Revenues$766,651 $904,738 $1,671,389 
Significant Segment Expenses
Labor and labor-related1
599,881 522,052 1,121,933 
Food, chemicals and supplies58,627 294,690 353,317 
Bad debt expense17,557 18,046 35,603 
Depreciation and amortization expense3,664 3,779 7,443 
Other segment items2
14,907 21,446 36,353 
Segment profit$72,015 $44,725 $116,740 
Segment margin9.4 %4.9 %
Unallocated expenses (income)
Corporate expenses3
$62,082 
Gain on deferred compensation plan investments6,684 
Other (income), net(12,938)
Interest expense7,856 
Income before income taxes$53,056 
1.Includes direct labor costs, field management costs (including certain costs included in selling, general and administrative expense), employer taxes, workers' compensation and general liability insurance.
2.Includes expenses for technology, employment advertising, travel & entertainment, professional services and various other less significant expense items.
3.Represents selling, general and administrative expense less the amounts allocated to segments for labor and benefits.

Year Ended December 31, 2022
HousekeepingDietaryTotal
(in thousands, except for percentages)
Revenues$795,687 $894,489 $1,690,176 
Significant Segment Expenses
Labor and labor-related1
621,469 534,786 1,156,255 
Food, chemicals and supplies63,300 288,975 352,275 
Bad debt expense11,823 20,146 31,969 
Depreciation and amortization4,040 4,528 8,568 
Other segment items2
14,427 19,675 34,102 
Segment profit$80,628 $26,379 $107,007 
Segment margin10.1 %2.9 %
Unallocated expenses (income)
Corporate expenses3
$63,218 
Loss on deferred compensation plan investments(9,178)
Other expense, net5,427 
Interest expense2,987 
Income before income taxes$44,553 
1.Includes direct labor costs, field management costs (including certain costs included in selling, general and administrative expense), employer taxes, workers' compensation and general liability insurance.
2.Includes expenses for technology, employment advertising, travel & entertainment, professional services and various other less significant expense items.
3.Represents selling, general and administrative expense less the amounts allocated to segments for labor and benefits.
The following table provides capital expenditures disaggregated by the Company’s reportable segments for each of the years ended December 31, 2024, 2023, and 2022:

Year Ended December 31,
202420232022
(in thousands)
Capital expenditures
Housekeeping$5,166 $4,684 $4,412 
Dietary936 494 499 
Corporate overhead234 228 299 
Consolidated$6,336 $5,406 $5,210